Vision enables you to create reorder point (ROP) models to specify settings for calculations of reorder points. For each ROP model, you can establish different ROP rules based on four ROP factors: manufacturer, product class, product type, and ABC code. Each set of ROP factors is associated with an average monthly usage calculation.
During End-of-Month processing and during on-demand ROP recalculations, the system recalculates reorder points. If a product meets a set of ROP factors in the ROP model assigned to the warehouse, the ROP calculations associated with that set of factors is performed.
If the system calculates the safety stock quantity, the reorder point, or the linepoint, and any of those quantities are less than 1, the system checks to see if an average monthly usage minimum factor has been established for the ROP model. If a minimum factor has been identified, then the system compares it to the average monthly usage.
For example, if the calculated linepoint is less than 1, the system checks the average monthly usage. If the average monthly usage is less than the minimum factor, then the linepoint is set to 0. If the average monthly usage is greater than the minimum factor, then the linepoint is set to 1.
The ROP Model screen of the Purchasing tab is where you set up and maintain ROP models. You can also access the average monthly usage minimum factor information from this screen.
Note: An ROP model is not used for calculating average monthly usage and reorder points for products until the model is assigned to a warehouse. The System Configuration screen of the Vision Configuration tab is where you assign an ROP model to a warehouse. For more information, refer to Specify ROP settings for a warehouse.
Note: To access the ROP Model screen, you must have the proper security privileges. The ROP Maintenance job function needs to be assigned to one of your roles. Roles are assigned to users in the User Maintenance on the Security Maintenance screen of the Vision Configuration tab. For more information, refer to About roles and job functions.
On the ROP Model screen of the Purchasing tab, select the ROP model on which you would like to work. (For instructions on how to do this, refer to Modify an ROP model.)
Note: Before you can set up calculation data for an ROP rule, options must be selected for each of the rule's four ROP factors (manufacturer, product class, product type, and ABC code) in the ROP Rules area.
Right-click the gray box in the far left column of the rule whose average monthly usage calculations you would like to set up or modify, and then select Change Calculation Data on the shortcut menu. The Average Monthly Usage and Reorder Point Calculations dialog box appears, enabling you to set up and maintain the average monthly usage calculations.
In the Minimum factor to stock 1 unit field, type a decimal number between 0 and 1. Then if the calculated safety stock quantity, the reorder point, or the linepoint is less than 1, the system compares this minimum factor with the average monthly usage and adjusts the safety stock quantity, the reorder point, or the linepoint as necessary.
For example, if the calculated linepoint is less than 1, the system checks the average monthly usage. If the average monthly usage is less than the minimum factor, then the linepoint is set to 0. If the average monthly usage is greater than the minimum factor, then the linepoint is set to 1.
Click the Accept button to save your minimum factor data. The Average Monthly Usage and Reorder Point Calculations dialog box closes.
Click the Accept button save your ROP model.
During End-of-Month processing — and whenever the ROP/EOQ recalculation is run on demand — the system checks for changes made to the ROP models and updates the reorder points for every affected product.